Middle Income Countries

Baroness Amos: My right honourable friend the Secretary of State for International Development has made the following Written Ministerial Statement.
	Although DfID's primary focus is, and will remain, the poorest countries of the world, DfID is producing a middle income countries' strategy to ensure that our resources are used effectively to deliver the millennium development goals. We are publishing a consultation paper for discussion with our partners, and a copy has been placed in the Library. Our aim is to secure an improved international consensus around support to middle income countries.
	We will publish the final version of the strategy later in 2005.

Worker Registration Scheme: Accession Monitoring Report

Baroness Scotland of Asthal: Today we are publishing the third accession monitoring report showing provisional management information from the Worker Registration Scheme and data from government monitoring of benefits, housing and national insurance number applications for the period 1 May 2004 to 31 March 2005. The report is available electronically on the Home Office website at www.ind.homeoffce.gov.uk/ind/en/home/0/reports/accession—monitoring.html.
	Also today, as part of the Government's commitment to monitor the impact of workers from eight of the new EU member states on the UK labour market, the Department for Work and Pensions is publishing early evidence of the impact of the free movement of workers from central and eastern Europe on the UK labour market. The report is available at www.dwp.gov.uk/asd/asd5/wp18.pdf.
	The evidence confirms earlier indications that the Government's decision to allow individuals from the new member states to work in the UK has been largely beneficial to the UK economy. We estimate that workers from the new EU member states contributed approximately £500 million to UK GDP between May 2004 and March 2005. New EU citizens continue to register employment throughout the UK, easing employer recruitment difficulties and helping to address labour shortages in key sectors. The number of people from the new member states seeking benefits remains exceptionally low. There appears to have been a significant reduction in illegal working among accession nationals, and an increase in employment and output in the sectors in which these workers are located, with minimal impact on resident workers.
	In total 176,000 workers from the new member states applied to the worker registration scheme between 1 May and 31 March 2005, of whom up to a third (59,000) were already in the UK before 1 May 2004. The level of applications has fallen since the peak in June and July 2004. Many workers only remain for short periods of time. A recent survey commissioned by the recruitment firm Manpower found that of employers who had taken on workers from the new member states half had workers who had subsequently left their employment. On average, workers who had left were employed for between three and four months. In future the e-borders programme will allow us to monitor people leaving and entering the UK.
	The accession monitoring report shows that workers from the new member states are continuing to find jobs in sectors where there are a high number of vacancies. For example, 8 per cent of workers registered in the manufacturing sector, which according to the latest ONS vacancy survey had over 628,900 vacancies in the quarter ending April 2005. Significantly, there is evidence from the most recent labour force survey that demand for labour is still outstripping supply in certain sectors, despite the fact that high percentages of new EU nationals are registered as working in these industries.
	Since enlargement of the European Union on 1 May 2004, macro-economic conditions in the UK remain robust and the UK labour market continues to perform well. Individuals from the new member states make up just over 0.4 per cent of the total working age population, and there is little evidence of widespread impacts on employment, unemployment or wages. UK employment currently stands at 74.9 per cent, unchanged from 12 months ago. In March 2005 the average earnings index, excluding bonuses, was up 4.6 per cent on the year, unchanged from May 2004.
	The early evidence from the Impact of the Free Movement of Workers study suggests that overall the effect of EU enlargement on the UK labour market has been broadly positive, reflecting the flexibility and speed of adjustment of the UK labour market. The employment rate of individuals from the eight new member states has increased substantially—from under 60 per cent in 2003 to over 75 per cent by the end of 2004—while employment has continued to rise to record levels for both the domestic population and other foreign born nationals. In particular, employment has grown significantly in the agriculture and fishing sector. There is some early, mixed evidence that wage inflation in this sector has been lower than in the rest of the economy; further analysis will be necessary to confirm this finding. There are some early suggestions from the analysis that employment of workers from the new member states has led to small localised increases in the claimant unemployment count. However these are preliminary findings, of small magnitude and are expected to be a short term effect. Further analysis will be undertaken to test these findings the effects will continue to be monitored closely over the coming months.
	All the evidence from the accession monitoring report continues to reinforce earlier suggestions that individuals from the new member states are coming to the UK for the opportunity to work, not to claim benefits. Over 98 per cent of applications for national insurance numbers made by individuals from the new member states between 1 May 2004 and 31 March 2005 were for employment purposes. Very few are receiving out of work support or housing and homelessness assistance. For example, between May 2004 and March 2005 there were 1,191 applications for income support, job seeker's allowance and state pension credit, and of these fewer than 40 were allowed to go forward for further consideration. Over the same period there have been just 43 local authority lettings to tenants from the eight new member states and only 216 people were accepted for assistance under the homelessness legislation. The vast majority of recipients (70 per cent and 80 per cent respectively) were in the UK before 1 May 2004. Registered workers continue to be young (82 per cent were aged 18 to 34) and only 2 per cent of registered workers had dependants under the age of 17 living with them in the UK. This profile reinforces earlier evidence that the usage of hospital and education services by accession nationals is low.
	The next set of figures, incorporating the second quarter of 2005 (April to June 2005), will be published in August.

Terrorism Act 2000

Baroness Scotland of Asthal: I am pleased to say that Lord Carlile of Berriew QC has completed the report on the operation of the Act, which will be laid before the House today.

Queen's Award for Voluntary Service 2005

Baroness Scotland of Asthal: I am pleased to report that this year's recipients of the Queen's Awards for Voluntary Service were announced on Thursday 2 June.
	This prestigious annual award for groups of volunteers has been given this year to 92 groups whose outstanding voluntary activity has enhanced and improved the quality of life and opportunity for others in the community. The Government actively support the work of the voluntary and community sector and are encouraging more people to participate in community activity. This award will give some of those people the recognition they richly deserve. The details of the successful groups are as follows.
	
		
			   Activity Description 
			  East Midlands 
			 1 Incest and Sexual Abuse Survivors provision of counselling and support for adults in Nottinghamshire abused as children 
			 2 Talking with Hands enabling children and adults with hearing difficulties to visit the cinema to watch signed and subtitled films 
			 3 Grantham and District Talking Newspaper for the Blind providing weekly news items for the visually impaired in Grantham 
			 4 Readycall helping the elderly in South Derbyshire to maintain independence in their own homes 
			 5 Nottingham and Nottinghamshire Advocacy Alliance promoting the needs and rights of vulnerable people in Nottinghamshire to enhance their quality of life 
			  East of England  
			 6 SOS Home Safe and Sound Project providing a weekend community bus in Norwich city centre to reduce crime and the fear of crime 
			 7 Luton United Football Club providing recreational opportunities for young people in Luton with access to football coaching qualifications 
			 8 Yarls Wood Befrienders providing friendship and support to refugees and asylum seekers detained in Yarls Wood Immigration Removal Centre 
			 9 North Lynn Community Centre providing a community resource to benefit people living in North Lynn 
			 10 Magpas operating an emergency rapid response medical charity in Peterborough and Cambridgeshire 
			 11 St Clare Hospice caring for people and their families who are affected by life-threatening illnesses 
			 12 FIND providing friendship and basic essentials to families in Ipswich and surrounding areas to alleviate their serious social problems 
			 13 Basildon Pathfinders Blind and Partially Sighted Group supporting visually impaired people in Basildon through social interaction, holidays and information 
			 14 Dacorum Talking Newspaper providing visually impaired people in Hertfordshire with access to community information 
			 15 Furniture Link (Bedford) recycling furniture and household goods to those in need in Bedfordshire 
			  Guernsey  
			 16 Channel Islands Air Search providing a rapid response airborne search facility in the waters surrounding the Channel Islands 
			 17 The Guernsey Women's Refuge offering accommodation to women and children in Guernsey seeking respite from physical or domestic abuse 
			  Jersey  
			 18 Community Bereavement Service providing a free and confidential bereavement counselling service to people in Jersey 
			  Isle of Man  
			 19 Riding for the Disabled Association, Isle of Man providing riding and carriage driving opportunities for people in the Isle of Man who have physical learning difficulties 
			  London  
			 20 Muslim Welfare House providing ethnically diverse communities in Islington with educational, social and recreational support 
			 21 Islington Chinese Association providing a multi-cultural resource centre for Chinese people as well as serving the wider local and national community 
			 22 Waltham Forest Asian Seniors' Club providing a centre to support the welfare of older Asian people in the community 
			 23 Sai School of Harrow nurturing children from multi-faith communities in north London through education, social projects and citizenship 
			 24 Ebony Steel Band Trust encouraging young people to appreciate their cultural history through arts and music 
			 25 Youth Retreat Project empowering and training disadvantaged young people in north London through workshops and presentations 
			 26 The Holly Lodge Centre Volunteers providing opportunities for people of all abilities and ages to enjoy and learn about the natural environment and history of Richmond Park 
			 27 Eritrean Muslim Community Association advising on education and welfare together with the provision of recreational and social activities for diverse communities in London 
			  North East  
			 28 Escape Family Support Ltd providing drug and alcohol misusers and their families with support in Northumberland 
			 29 Waterhouses Community Association improving community needs and the environment in Waterhouses through social, educational and recreational activities 
			 30 Ferguson Lane Community Association providing companionship and support for vulnerable residents in disadvantaged areas in Newcastle 
			 31 St Benedict's Hospice Volunteers in Sunderland providing practical support to patients, families and carers to complement palliative care in St Benedict's Hospice 
			  North West  
			 32 Barnabus supporting the needs of homeless people and street sex workers in Manchester with food, education and medical facilities 
			 33 SAMM (Merseyside) providing emotional support to families and friends in Merseyside bereaved by murder or manslaughter 
			 34 Bowland Pennine Mountain Rescue Team operating a mountain search and rescue service in the rural areas of Lancashire 
			 35 Brunshaw Action Group addressing the needs of communities in Burnley to reduce crime and anti-social behaviour through community cohesion 
			 36 Talbot House Support Centre giving practical advice, guidance and support to parents of children with special needs in Manchester 
			 37 West View Community Association enhancing the quality of life for the community in West View through provision of social and educational facilities 
			 38 Pakistani Community Centre (Longsight) providing multi-functional social, domestic and leisure services to diverse communities in Longsight 
			 39 Carlisle and District Remap design of one-off equipment for disabled people for whom there is no commercially available alternative 
			 40 The Aintree Volunteer Scheme assisting with patient experience of hospital attendance in Aintree NHS hospitals 
			  Northern Ireland  
			 41 BCM Volunteers helping those most in need in the local community through practical and emotional support 
			 42 Aghalee Village Hall Management Committee management of a resource centre for residents from all areas of the community in Aghalee 
			  Scotland  
			 43 Skye Old People's Welfare Committee providing transport for elderly people in Skye attending appointments and recreational activities 
			 44 Islay and Jura Advice Centre providing a free and confidential independent advice service to residents and groups in Islay and Jura 
			 45 Ullapool and District Junior Pipe Band and Highland Dancers developing skills, talent and self-esteem of young people in Ullapool and district and the provision of a community activity 
			 46 Ragamuffin's Children's Theatre bringing children and adults together in Torry and Aberdeen through community theatre events and activities 
			 47 Caldercruix Youth and Community Development Project providing a programme of activities and opportunities for children and young people in Airdrie to increase educational and employment potential 
			 48 Beith Playpark Action Group providing a recreational facility for children and young people in Beith and raising funds for further development 
			 49 BCD Credit Union providing a range of financial and insurance services to residents in Bridgeton, Calton and Dalmarnock 
			 50 The Muirfeld Group of Riding for the Disabled offering riding therapy to disabled people in and around East Lothian 
			 51 Dedridge Good Neighbour Network providing Livingston New Town with a sense of common identity and support through advice and social activities 
			 52 Killin Mountain Rescue Team locating climbers and walkers in difficulties in the Killin mountainous area 
			 53 The Gladiator Programme delivering physical activities through play and sports programmes in schools and communities in Greater Easterhouse and across Glasgow 
			 54 The Esk Valley Trust encouraging public awareness of the Esk Valley through the creation of community paths 
			  South East  
			 55 Volunteer Centre—West Berkshire providing a volunteer recruitment resource centre and a community transport scheme 
			 56 The Lakes Estate Summer Group serving the needs of Bletchley through social and educational family activities 
			 57 The Source providing a centre for young people in Aldershot for mentoring and social activities, reducing anti-social behaviour 
			 58 The Heart of Kent Hospice supporting patients, families and staff in the hospice through physical, emotional, social and spiritual care 
			 59 Surrey Appropriate Adult Volunteer Scheme looking after the welfare of juveniles and vulnerable adults in Surrey while in police custody 
			 60 The Sussex Snowdrop Trust supporting families of children in West Sussex diagnosed with life-threatening or terminal illnesses 
			 61 CIS'ters supporting women in the UK who have been victims of childhood incest and raising awareness of the situation 
			 62 East Surrey Domestic Violence Forum helping to reduce domestic violence and assisting victims in East Surrey by providing protection, support and advice 
			 63 Wallingford Coach for the Disabled (Elizabeth) provision of community transport in Wallingford and district for people with impaired mobility 
			 64 Mayfield and Five Ashes Community Cars providing community transport for residents in Mayfield and Five Ashes attending health related appointments 
			 65 Lighthouse Education Project meeting the needs of young people in the traveller community in Watersedge through an alternative learning environment 
			 66 TALK supporting people in Surrey with dysphasia difficulties through therapy and communication partnerships 
			 67 Christian Care Association providing homeless and marginalised people in Chichester and Bognor area of West Sussex with shelter, support and advice 
			 68 Kent and Medway Walking Bus Group supporting parents, groups and schools in Kent and Medway by the operation of walking buses 
			 69 Gatwick Detainees Welfare Group supporting detainees at Gatwick Airport through friendship information and discrimination awareness 
			  South West  
			 70 Support Against Racist Incidents Charity supporting victims of racial harassment in Bristol through advice, training and raising community awareness 
			 71 Hartcliffe and Withywood Teenage Parents Project providing practical, emotional and mentoring support for teenage parents in Bristol and raising awareness through education 
			 72 Ford Park Cemetery Trust restoring, managing and preserving the architectural and historical heritage of Ford Park Cemetery 
			 73 West Somerset Disability Association providing support, social and educational opportunities for people with physical difficulties living in West Somerset 
			 74 Newquay Rowing Club providing recreational rowing and a social focal point for adults and young people in Newquay alongside local fundraising 
			 75 Codford Youth Group Network providing a meeting place for young people in Codford with recreational and sporting facilities 
			 76 Gloucestershire Cloud 9 organising holiday of a lifetime visits for children in Gloucestershire who have physical or chronic illnesses 
			 77 Camborne Community Centre managing a community resource in Camborne to provide social educational and recreational facilities for local residents 
			  Wales  
			 78 Rhyl Gateway Club providing a meeting place for social, recreational and educational facilities for those with learning difficulties in Rhyl and district 
			 79 Eastern Valley Tenants Panel advising and supporting tenants in Eastern Valley to encourage community involvement 
			 80 Swansea Chinese Community Co-op Centre promoting the well-being of the Chinese community in the Swansea area 
			 81 Moelfre Community Project involving older people in the Moelfre community through a day care centre, social and educational facilities 
			  West Midlands  
			 82 Stafford Samaritans supporting people in Stafford who are in distress or in life-threatening situations 
			 83 Biddulph East Residents Association promoting the interests and needs of residents in Biddulph East through community partnerships with agencies and organisations 
			 84 Strokes R Us supporting and advising people in North Staffordshire who have stroke related health difficulties 
			 85 South Wye News involving people in South Wye in a regular and sustainable newspaper profiling issues of local interest 
			 86 Newton Farm Community Association offering free and confidential sources of information and advice to groups operating within South Wye and to the general public 
			  Yorkshire and the Humber  
			 87 Wakefield Hospice providing family support and palliative care to patients in Wakefield Hospice alongside fundraising for amenities 
			 88 Young Leaders in the Community recruiting and training young people in Sheffield helping to support drug abuse groups 
			 89 Hookstone Chase Community Association providing a centre for the community to participate in social, educational and recreational facilities 
			 90 Huddersfield and District University of the Third Age encouraging active lives in Huddersfield through mental stimulation and recreational activities for retired people and those with physical difficulties 
			 91 Caring for Life providing long term support and care to those with mental health, domestic and homeless difficulties in west Yorkshire 
			 92 Pakistan and Kashmir Welfare Association Ltd redressing the poverty and disadvantages faced by the Pakistani and Kashmiri communities in North Kirklees through an innovative range of services.

Home Office: Race Equality and Associate Schemes

Baroness Scotland of Asthal: I have today placed in the Library copies of the overarching race equality scheme for the Home Office and the "associate" schemes for the core (non-Immigration and Nationality Directorate) Home Office, the Immigration and Nationality Directorate, the National Probation Directorate, the Prison Service, the UK Passport Office, the Forensic Science Service and the Criminal Records Bureau.

Pay and Personnel Agency: Key Targets

Lord Drayson: My right honourable friend the Under-Secretary of State for Defence (Don Touhig) has made the following Written Ministerial Statement.
	Extensive discussions aimed at setting clear key targets for the Pay and Personnel Agency have been concluded. My objective was to focus on customer service and satisfaction, process and efficiency.
	I have, therefore, agreed with the chief executive of the PPA the following key targets.
	Customer Service and Satisfaction
	Key Target 1: Achieve 99.0 per cent average timeliness and 97.3 per cent average accuracy for salary payments, expenses payments and pension awards.
	Key Target 2: Achieve 93 per cent average responsiveness against key service standards.
	Key Target 3: Improve customer satisfaction index score from 72.6 per cent in 2002–03 and 78.5 per cent in 2004–05 to 80 per cent in 2006–07. (Note: not measured in 2005–06; measured in alternate years.)
	Processes
	Key Target 4: Implement programme for future pay system, achieving systems integration testing by January 2006, and user acceptance and PPA business readiness by March 2006.
	Key Target 5: Migrate agency into future People, Pay and Pensions Agency, supporting agreed package of early services by April 2005; interim recruiting service by September 2005; and PPA systems and processes ready to migrate by March 2006.
	Efficiency
	Key Target 6: Reduce unit costs in real terms by: salary payments 10 per cent; expenses payments 25 per cent; pension awards 10 per cent.

Royal Navy: Mine Countermeasures Squadrons

Lord Drayson: My right honourable friend the Minister of State for the Armed Forces (Adam Ingram) has made the following Written Ministerial Statement.
	Honourable members would wish to be aware of changes to the base ports of the Royal Navy's mine countermeasures squadrons.
	Following on from announcements made in the July 2004 Defence White Paper, the Royal Navy has considered how best to reorganise mine countermeasures squadrons to deliver the operational capabilities required in the future. Due to: the variations in the types of sonar on the two classes; the requirement for some HUNTs, which can be used for fishery protection duties, to be co-located with the Fishery Protection Squadron in Portsmouth; and because we wish to cause the minimum amount of disruption to individuals, it has been decided that the best long-term option will be provided by the formation of two single-class squadrons. This means that, in the future, all eight HUNT class vessels will be based in Portsmouth whilst all eight SANDOWN class vessels will be based in Scotland (Faslane). The changes required to achieve this will be complete by March 2007.
	Some 150 or so personnel are involved. For them and their families this change provides an opportunity to introduce long-term stability. No personnel will be made redundant as a result of the changes in basing arrangements.

Northern Ireland: Fraud Law Reform

Lord Rooker: My honourable friend the Minister of State for Northern Ireland (David Hanson) has made the following Ministerial Statement.
	During 2004, on the basis of proposals for the reform of fraud law in England and Wales my predecessor, the right honourable John Spellar MP, commissioned a public consultation exercise on similar reforms in Northern Ireland. Northern Ireland legislation on fraud generally mirrors the legislation in England and Wales and the Government took the view that there would be considerable benefit in maintaining a consistent approach across both jurisdictions. The consultations in both jurisdictions produced broadly similar responses.
	Today, I am pleased to announce the publication of the Government's response to consultation in Northern Ireland on the reform of the law on fraud. I am also pleased to announce my decision that the draft Fraud Bill, as introduced on 25 May in the House of Lords, will extend to Northern Ireland.
	The Government's proposals reflect the widespread public support for the proposed draft legislation across England, Wales and Northern Ireland. It is vital that police and prosecutors have a modern legislative framework to deal with fraud which will make the prosecution process simpler and more efficient for both juries and defendants. The reforms proposed in the draft Bill will make the law more relevant and effective in tackling the wide range of fraudulent activity.
	I have placed copies of the Government's response to the public consultation in Northern Ireland in the Library of the House.

Northern Ireland Prison Service

Lord Rooker: My honourable friend the Parliamentary Under-Secretary of State for Northern Ireland (Shaun Woodward) has made the following Ministerial Statement.
	The 2004 Spending Review settlement required the Northern Ireland Prison Service to commission an independent review of its strategy for reducing unit costs.
	The review was led by Hamish Hamill, the retired Head of the Scottish Justice Department who was assisted by Michael Cook, governor of HM Prison The Verne and Gary Law, unit manager of HM Prison Edinburgh. I am very grateful to them for their report which makes five principal recommendations.
	Recommendation 1
	The key target for NIPS should be to reduce its costs per prisoner place in real terms year-on-year by an agreed amount that is valid in the Northern Ireland context.
	Recommendation 2
	A wider review of the prisons estate is urgently required to inform long-term investment decisions.
	Recommendation 3
	NIPS should urgently explore the option of contracting out the full range of escort services in preference to reactivating prisoner custody officer recruitment.
	Recommendation 4
	A better understanding between management and staff representatives should offer quick wins for both sides and must be a top priority for the new director general.
	Recommendation 5
	The development of an enhanced model to assist in the provision of regular forecasts of the prisoner population, taking account of the range of relevant criminal justice system variables, should be given greater priority than it has had until now.
	The Government accept the report's recommendations which, when taken together with the service's efficiency programme, represent a comprehensive programme of work.
	To take the report's recommendations forward, I have asked Robin Masefield, the director general of the service, to prepare a strategic development plan aimed at drawing up the blueprint for the long-term development of the Northern Ireland Prison Service.
	The terms of reference for the work to develop the prison service strategic development plan are as follows:
	This study will draw up the blueprint for the long-term development of the Northern Ireland Prison Service. It will create a firm platform for the service's estate strategy and value-for-money investment decisions in relation to accommodation, facilities and services for prisoners.
	The study will build on the earlier estate strategy review completed in 2002 which concluded that Northern Ireland required three separate establishments. It is not intended to challenge that particular assumption, but the study will take account of:
	(a) potential changes in the prisoner population over the next 10-15 years and the foreseen operational needs of the service;
	(b) the current condition of the NIPS estate and the NIPS estate strategy review completed in 2002 where still relevant;
	(c) work in progress to clarify the role of individual establishments e.g. the review of the regime for life sentence prisoners;
	(d) the approach to the private sector in prison services in Great Britain and the potential for reductions in the cost to the taxpayer;
	(e) the comparative risks to deliverability of public and private sector operations, in the Northern Ireland context;
	(f) other relevant factors, including likely timescales, the merits of alternative locations for prisoners in Northern Ireland, and the employment effects in the north-west;
	(g) affordability; and
	(h) the service's current efficiency programme.
	The study is to take note of all other relevant evidence, including the recent report of the independent review led by Hamish Hamill and reports based on the concept of a healthy prison by the inspectorates in relation to both Magilligan and Hydebank Wood.
	The work will consist of a number of strands taken forward under the oversight of a central steering group. Trade union and staff association representatives will be consulted fully during the study.
	The main output from the review i.e. the service's strategic development plan, is to be completed before the end of 2005.
	I have placed copies of the Hamill report in the Libraries of both Houses

Rotherham General Hospital NHS Trust

Lord Warner: The chairman of Monitor (the statutory name of which is the Independent Regulator of NHS Foundation Trusts) announced on 31 May 2005 that, in accordance with Section 6 of the Health and Social Care (Community Health and Standards) Act 2003, Monitor authorised Rotherham General Hospital NHS Trust as an NHS Foundation Trust from 1 June 2005.
	A copy of Monitor's press notice has been placed in the Library.
	Monitor's announcement brings the total number of NHS Foundation Trusts to 32.

NHS Research Ethics Committees

Lord Warner: My right honourable friend the Minister of State (Jane Kennedy) has made the following Written Ministerial Statement.
	On 16 November 2004 (Official Report, col. WS 60), my noble friend, the then Parliamentary Under-Secretary of State Lord Warner, announced that he had asked Michael O'Higgins, a managing partner of PA Consulting Group Ltd, to chair a small ad hoc group of scientists and lay members examining the operation of the research ethics committee system, including the Central Office for National Health Service Research Ethics Committees. The report is published today and its findings and recommendations will now be subject to consultation through the National Patient Safety Agency.
	Copies of the report have been placed in the Library.

Regulatory Impact Assessments

Lord Bassam of Brighton: The Government are committed to ensuring that regulations are necessary, give effective protection, balance cost and risk, are fair and command public confidence.
	In accordance with this, we require departments to produce and publish RIAs for all regulatory proposals likely to have an impact on business, charities or voluntary bodies.
	My right honourable friend the Chancellor of the Duchy of Lancaster has today presented to Parliament a Command Paper [Cm 6552] listing RIAs published between 1 July and 31 December 2004. Copies of those listed have been placed in the Libraries of both Houses. This is the twenty-second such Command Paper.

Tax Credits: Overpayments

Lord McKenzie of Luton: The Paymaster General (Dawn Primarolo) has made the following Written Ministerial Statement.
	Today over six million families and 10 million children are benefiting from tax credits. The tax credits introduced in April 2003 are more generous and more inclusive than any previous system of income-based financial support.
	The introduction of a system of tax credits has been a huge undertaking. For the vast majority of families the new system is working well, providing important advantages over previous systems of support. In particular, the new system is more responsive than previous "snapshot" systems; it allows awards to be adjusted in-year when a family's income or other circumstances change.
	I am determined that the tax credit system will do the job it was designed for—to deliver to all families the financial support they are entitled to, providing the right amount of support at the right time. However, at the point when the new tax credits were introduced, problems arose affecting a small proportion of families. Many Members have raised specific cases with me and there has been much discussion and debate in the House, most recently in the Westminster Hall debate that I was unfortunately unable to attend due to illness. I am, therefore, taking this opportunity to provide the House with an update on the steps that HM Revenue and Customs (HMRC) is taking to address these problems.
	It is now well known that in the early months of 2003–04 the Inland Revenue encountered serious problems with the new IT system, resulting in overpayments and other difficulties. Some families have also found the information provided to them on the status of their awards unclear, which has made the process more difficult.
	In response to these challenges I have agreed with David Varney, the Chairman of HMRC, that HMRC will take a series of important steps to improve the administration of tax credits. The department has been working hard with its new IT contractor to improve the performance of the tax credits IT system. The accuracy with which tax credits information is processed is improving. Officials have been working closely with representative bodies, for example, to improve the clarity of the information provided to families on their tax credit awards. Further, new streamlined procedures have been introduced to decide cases where the recovery of an overpayment is disputed.
	These are all important steps forward but there remain key challenges for the department in delivering tax credits. I am therefore setting out six measures to improve significantly the tax credits system, with particular regard to:
	i. how the department communicates with families about their tax credit award;
	ii. reducing the risk of errors adding to the number of overpayments; and
	iii. improving procedures for recovering overpayments.
	1. Building on the work already undertaken to improve the clarity of the tax credit award notice and in consultation with the voluntary sector, HMRC will review the effectiveness of information provided to claimants, to support them in understanding the responsive nature of the tax credit system and the risk of overpayments. In particular the department will develop solutions to reduce the number of cases where people receive unnecessary duplication of award notices.
	2. HMRC will test out new methods of reminding tax credit claimants of the importance of providing up to date information in-year on changes in their income and circumstances. The department will consider options to identify families most at risk of an overpayment and support them through better targeted contacts to ensure their stated circumstances and income are up to date.
	3. HMRC will develop options to improve the quality of service on the helpline, in particular to ensure that helpline operators can track the progress of individual cases in the system, reducing the need for families to contact the helpline on multiple occasions.
	4. HMRC will improve the speed with which it identifies IT system problems and processing errors so that they can be resolved more quickly.
	5. Tax credits are working well for millions of families but the system is new and requires active engagement from claimants. The role of the voluntary sector in providing advice to families receiving tax credits is crucial. I have asked HMRC to develop innovative ways of working with the sector to target more active support on vulnerable families.
	6. HMRC will review the operation of the code of practice on overpayments. Meeting the commitment made by HMRC's chairman to the Public Accounts Committee in January 2005, the department will ensure that in cases of genuine hardship where the recovery of an overpayment is disputed, recovery can be suspended while the dispute is resolved.